An investment and holding company based in Abu Dhabi, ADQ, has announced plans to invest $35 billion in Egypt. For $24 billion, a private consortium led by ADQ will purchase the development rights for Ras El-Hekma, transforming the area into one of the biggest new city developments. In order to support Egypt’s economic development and growth, ADQ will also convert $11 billion in deposits into investments in prestigious projects all over the country.
About 350 kilometers northwest of Cairo is the Egyptian coastal region of Ras El-Hekma. With world-class infrastructure, the substantial investment is a crucial step towards making Ras El-Hekma a premier Mediterranean holiday destination, financial hub, and free zone that will boost Egypt’s potential for economic and tourism growth. A quarter of the development in Ras El-Hekma will be owned by the Egyptian government.
With an area of more than 170 km2, Ras El-Hekma is set to become a cutting-edge metropolis, primarily focused on tourism. It will feature a free zone, an investment zone, and residential, commercial, and recreational spaces that are seamlessly connected both domestically and internationally. By implementing the newest state-of-the-art digital and technological smart city solutions, ADQ hopes to capitalize on its broad portfolio and partnerships to increase Ras El-Hekma’s attractiveness as a premier international financial and tourism destination. As part of its growth and investment strategies, ADQ plans to utilize Egyptian and foreign partners. Early in 2025 is when work is anticipated to start.
The rationale behind ADQ’s investment in Ras El-Hekma is rooted in its extensive experience in smart growth planning and its participation in comparable large-scale infrastructure and development projects within the region. With over $150 billion in projected investment, ADQ’s experience in offering fully integrated infrastructure solutions spanning a wide range of services, including energy, water, transportation, and real estate, promises to significantly boost Egypt’s economy and the new development.
The goal of Ras El-Hekma’s master plan is to maximize economic benefits by introducing ground-breaking, long-lasting solutions that will promote trade, attract foreign direct investment, support Egypt’s private sector through in-country localization initiatives, and create jobs.
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “ADQ is a long-standing investment partner in Egypt, and we have demonstrated our ability to select opportunities that are aligned with our investment framework and benefit the Egyptian economy. This investment underscores our commitment to developing Ras El-Hekma into one of Egypt’s most attractive coastal destinations through the enablement of mega-infrastructure and development projects, working with partners such as Modon Properties and Talaat Moustafa Group, which will deliver value across multiple sectors of Egypt’s vibrant economy.”
Global investors and tourists have shown a great deal of interest in Egypt’s North Coast, demonstrating the country’s ability to gain from international collaborations. With its unparalleled attractions, such as hotels, yacht marinas, and entertainment venues, Ras El-Hekma is set to become a premier Mediterranean destination.
One of the main focuses of the master plan under consideration is sustainability, which guarantees the preservation of the surrounding ecosystems while constructing a highly desirable area to live, work, and play in one of Egypt’s most renowned locations.
